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Closing Bell With Maria Bartiromo

News/Business. Maria Bartiromo. Analysis of the day's winners and losers in the stock market. New.

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01:00:00

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TOPIC FREQUENCY

Us 12, John Boehner 11, U.s. 6, Adobe 5, Washington 4, America 4, Facebook 4, Dan Niles 4, Ben Bernanke 4, Jan Schakowsky 3, China 3, Boehner 3, Dan 3, S&p 3, Bowles Simpson 2, United States 2, Geico 2, Hahaahahaha 2, Steven 2, Sandy 2,
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  CNBC    Closing Bell With Maria Bartiromo    News/Business. Maria Bartiromo. Analysis of the  
   day's winners and losers in the stock market. New.  

    December 13, 2012
    4:00 - 4:59pm EST  

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again, partly because of that. what you're going to get is a deal it's not a finalized deal. >> why isn't the market more volatile through all of this, do you think? >> i think so many people have been sitting on their hands, that neither side has been playing. the shorts haven't been that strong. people taking long position hasn't been strong, and that will dampen the overall volatility. >> thank you, warren. always good to see you. heading lower now, wouldn't you know, as we head towards the close. the dow now down 75 points near the lows of the session. that's the firsthouse hour of the "closing bell." thanks for joining us. maria has much more in the second hour of the "closing bell." i'll see you tomorrow. and it is 4:00 on wall street. do you know where your money is? hi, everybody, welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. market closing off the lows of the afternoon after news that president obama and speaker boehner are set for another meeting today on the fiscal cliff, one hour from right now.
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take a look at how the markets are settling out tonight. as soon as we got that announcement the market went from down 90 to down 50 and it's creeped lower since with a decline on the session of 80 points, finishing at 13,167. a decline of three-quarters of 1% at 2992 on the nasdaq and the s&p gave up 9 at 1419 and the federal reserve and the fiscal cliff weighed in on this market. how do you position yourself? joining me to discuss that our guests. gentlemen, nice to have you on the program. thanks so much for joining us. let me kick this off with you in terms of allocating capital right here in the face of so much uncertainty, fiscal cliff, federal reserve. what is going to be the dominant force in terms of moving money? >> i think you don't fight the
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fed. i think what happened yesterday is a little bit more of the same we had this year which is the fed is going to try to keep interest rates low until it moves people off the risk spectrum which means between bonds and equities we still favor equities. >> isn't it interesting, ed, that you've got the federal reserve now targeting an unemployment report rate in terms of moving on interest rates. 6.5% is the number, you know, that was spoken about so much yesterday. it that change your investment position in any way? >> no. i mean, it's pretty -- it's pretty simple to understand what you need to do. you need to buy equities if you're going to be real focused. look at equities with a little bit of a china exposure because china is starting to bottom a little bit, we think, so that's where i would focus. the number one thing and the greatest clarity i have in 26 years in this business, stay away from interest rate sensitive bonds and stay away from bond funds, and that's what you need to be doing right this moment. >> so you go on equities then, all in in equities then? >> let me tell you, if you're going to be an investor for longer than two years, stay
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away. if you need fixed income, run away from interest rate sensitive bonds. >> what about the fiscal cliff, you think we get a deal by the end of next week? we going to get a deal? >> i don't see a long-term deal. >> it's pretty easy to come to that conclusion, brian, given the fact that they have had 13 months to discuss this and think about it and now we're down to 18 days to deal with medicare, medicaid and defense spending, what, social security, taxes. what else can we throw into the bucket? >> yeah. you can just throwing more and more in. i think it's clear that they won't be able to come up with comprehensive reform in the next two weeks. >> then the question is how do you want to allocate capital? leo are where are you on that? >> i think it's clear. what we don't want to do is go into treasuries at 1.5% for ten years. >> that's what ed says. >> equities still clearly are a
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great choice, especially companies with great balance sheets. every day we hear clients talking about how bad the federal government balance sheet is, but corporate america has great balance sheets. there's a lot going on that's positive, energy, reshoring, businesses coming back. just stay away from the long-term bonds. short-term bonds and alternative strategies >> i know what you're saying and i get that because it's true. the corporate sector is probably the best part of this recovery. 3.6 trillion in cash, lean and mean, corporate america ready to lead once again, but the question is am i going to be able to buy stocks at much lower levels, so are we going to have a 100, an 800, 1,000-point decline if we go over the fiscal cliff? >> that's a great point. >> maria, we're not trading, right? that's always the question in the market. we have to use volatility to pick up positions and add to equity, and this is a long-term gape. we've become so short-term focused. got to stay focused long term
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and add on volatility. >> one of the things i'll add, we either most confident insecure people in the world and when we know based on our history and based on what we know needs top had a, but we don't know what's going to happen in the short run. the important point that everyone is missing, the stock market is 17% undervalued based on expected earnings, and we should be, maria, 10% overvalued based on where interest rate rates. we have 27% upside from this point forward and it's not happening because of all the fiscal cliff, obama care, the taxes. this market should be a lot higher if it wasn't for all of the stuff. >> what about the international story? where do you want to allocate capital outside the united states? >> the best way to allocate capital outside of the united states is focus on large multi-nationals in the united states but have exposure to places like china, india, brazil. why? because it's less volatile and a lot of their earnings are coming out of those places. >> that's a good point does it bother you if tax reform doesn't
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happen and, for example, hit the companies with so much money on international markets. >> i think corporations are already expecting a worst case scenario like most americans. to some extent any clarity will help unleash some of the corporate earnings down the road. >> does the dividend or cap increase scare anything out of market? >> if we focus on the short term it's a scary proposition. when the cost of anything goes up the profit goes down. i think long term we're still at lower rates than we've seen historical historically, and at the end of the day equities and real estate and certain alternative investments, that's still the only place to get a rate of return. i think you have to look past taxes. >> what are the sectors that you like best? >> well, we love the energy story here in the united states. we love the whole fracing story. it's a game-changer. the next ten years is all about energy here and what that does for u.s. manufacturing. technology, mobility, u.s. manufacturing and energy, that's
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exciting stuff. international, we think it's really looking inexpensive, especially emerging markets. >> all right. got to leave it there, gentlemen. real exciting stuff. appreciate your time and we'll see you soon. thank you guys. >> thanks, maria. software-maker adobe out with the fourth-quarter members. jon fortt outside adobe headquarters. over to you. >> reporter: hey, maria. looks like adobe has a beat on the top and bottom lines which might be seen as a bit of a surprise. it looked like the street was looking for 1.1 billion. adobe turns in 1.15. i was looking for around 56 cents in -- in proformo eps, and we've got 61 cents, i believe. now, what's particularly -- yeah, 61 cents non-gap. what's particularly important about that is adobe is adding creative cloud subscriptions at a really fast clip, around 10,000 a week.
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that's up from 8,000 the quarter before. that has some negative impact on revenue because they are not getting that big pop in software revenue that they used to get when they were selling the boxes, but they were selling subscriptions so that should even out nicely over the course of time as the revenues continue to roll in. so also they are marketing revenue, marketing cloud revenue and coming in strong. upbeat news from the state released today. maria? >> market down 74 and right over to bob pisani we go. ? >> maria, take a look at the dow industrials. the fiscal cliff smacks around the stock market today. did rise out. word got out that we have a meeting at 5:00 p.m. between representative boehner and president obama, but bear in mind here we sold off yesterday on the news announcement of additional treasury purchases, and a large part of the decline on the day is the sell on the news from the fed announcement. two issue, fed and, of course, fiscal cliff moving stocks here.
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take a look at the major sector, dollars reversed the declines of yesterday. energy, tech, materials, all down. volatility, everybody is waiting for it, but the vix does not move at all. just a modest move again today. the fiscal cliff looks like it's going to be resolved. that's what the vix is saying, and the fed's actions are not going to create volatility, even additional futures contracts in the vix are not higher in the last several weeks here. we did have a spike in bond yields yesterday. some good very excited about the idea that perhaps we were going to have some inflation issues, but, you see, inflation portfolios that spiked yesterday, didn't do anything today. the gold issue is down and the pimco tips, didn't do anything today and even funds, etfs, maria, that short treasuries like that tbt, that bottom one there, that had big volume yesterday and today but not a lot of price action. maria, back to you. >> up next, no impact.
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someone here says the federal reserve's unprecedented action to keep the economy on track won't make a lick of a difference in avoiding the fiscal cliff. the debate on the fed, the cliff and the economy coming up and represent schakowski says raising the eligibility age for medicare is a non-starter. we'll talk about it and dan niles, ahead of the curve? saw facebook's mess comin before the ipo. now he's ready to unload his top picks onnies giving us his ideas for the new year. second half of the show. you can't afford to miss that one. you're watching cleshl on cnbc, first in business worldwide.
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welcome back. between the federal reserve and the fiscal cliff it's a mess if you're trying to position yourself with 2013 with so much influence by ben bernanke. what happens between the president and john boehner in an hour >> narrator: what are the pros expecting in 2013? dan greenhouse is with me and also the chief economist with ihs global insight joins me. good to have you on the program, gentlemen. thanks so much for joining us. >> thank you. >> thanks, maria. >> dap, you think the fed captain really do much on the fiscal cliff? do you think the fed should have
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done without -- should have done what it did yesterday in terms of basically create more -- more stimulus? >> well, no, i don't think they should have done what they did yesterday, but that's a separate issue from the fiscal cliff, i think, and, you know, ben bernanke has been quite clear and quite frankly economists in general are quite clear about arguing there's very little the federal reserve can do to even partially offset the worst effects of the cliff should it actually happen. >> let me ask you your take on 2013. we know if we go over the cliff there are expectations that we'll see a recession, at least in the first half. what's your expectation for 2013 economics? >> well, if we don't go off the cliff, we're looking at 2% growth. but then if we do go of course, the question is how long do we go off? two weeks, big deal, i mean, in the sense that it won't have a big effect. if we go off for a couple of months we're looking at a recession scenario. >> you don't think we'll go off for a couple of months? if we go over a fiscal cliff
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doesn't that push them into action early january to do something? >> you're absolutely right. if we go off the cliff for even a few days the markets will have a fit, and i think that's probably enough to bring them back and figure this out fairly quickly. >> since you said the markets will have a fit, because i feel like the markets will have a fit if we don't have a deal by the end of next year. dan, what's your take on that? will we see a major selloff in stocks if there's no deal at the end of next week? >> i don't know if it's next week necessarily, but i can say more generally -- >> next week or the next week, right? we're 18 days away. >> certainly running out of time. >> right. >> i don't know if the selloff begins next week or the week after that, but i think certainly, you know, one thing that we can say is that tax rates are going up, and with respect to the capital gains tax rate we have two other instances in modern history in which the capital gains tax was increased, and in both snare quotes december in which it owe cured the capital gains tax rate went up, december wasn't exactly very
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good. certainly we're not tracking out that path right now and as you inch closer to the year the reality will settle in on investors that their tax rates are going up which may be a problem in the short term. >> what's the problem, dividend tax, capital gains, ordinary income? >> it's capital gains. the dividend tax rate is whatever in relation to the capital gains and the marginal tax rate increase and that really changes the ways investors look at investments more generally. in a 20-year time frame, is a capital gains tax rate 20% instead of 15% the end of the world? no, i don't think so, but in the short term it certainly affects behavior, that's for sure. >> are you selling right now? do you want to get, you know, take advantage of this 15% capital gains tax while you can? >> well, yes, i have some personal issues to deal with on that front in terms of being able to sell.
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our view has been if the cap gains tax rate is going up that investors will see a difficult time in november and since the election that's's broadly held true. >> nariman, what do you think? tell me yoweri pectations for 2013. hate to be such a short-term trader, because i'm not, but we're hanging on every word out of washington so give me your long-term expectations as well. >> i think the economy is doing quite well, you know, despite the fiscal cliff, and even thought the worries about taxes are affecting investors, they are not really affecting general economic activity, so the good news is the economy's got some sort of head of steam going, so from that perspective if they can do a deal relatively quickly, thin think we're in good shape. >> come on, if you look at the of a dense measures, they are
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turning down and measures of durable good orders, turning down. our question is housing and recoveries and they account for almost 80% of the economy. you're right, the capital goods orders are hurting, mostly because businesses are uncertain, i agree but general consumer spending, confidence aside. consumers are spending. that's the good news. >> the good news is they are not focused on the fiscal cliff the way businesses are, but at some point everything comes home to roost. sentiment is up, spending is up, but are we spending our way into oblivion and then we're going to find out oops? >> i doubt it. >> no, okay. >> i think the fundamentals, the fundamentals for consumer spending is pretty good. gasoline problems is down. jobs growth good enough to keep everything going. let's not forget waves growth which hasn't been playing along. >> hasn't been in a while.
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>> we'll see you season. gentleman, thank you very much. is it time to raise the eligible age for medicare, after all, a lot of people are living longer than when the program first began in 1966. represent jan schakowsky says no way. she's here next. and john mcafee talks about playing the crazy card but will the company find some criminals stealing millions from u.s. institutions. alpha one capital's dan niles with his top picks for 2013. he saw facebook's mess coming miles away and shorted it at 42, and wait until you hear what he's buying right now. stay with us. e more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations,
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where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ all ] i'm with scottrade.
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all right. welcome back. today we got a real true picture of how much this market is hanging on over word coming out of washington. you see the numbers here. we ended with a decline of 74 points on the dow jones industrial average.
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nasdaq down 21 moipts, and the s&p 500 down about 9 points, but it was a little bit of a roller coaster going into the close because at about 3:30 p.m. eastern time the market -- well, about 3:00 p.m. the market was down 90 points on the dow jones industrial average. then about 3:30 we learned that the president and speaker john boehner have set another meeting for today at 5:00 p.m. eastern time to further negotiate each side on the fiscal cliff. as soon that headline calm out, the market starting back from they wills. as a result a lot of people were saying this is an optimistic sign. things worsened there and was all about that conversation happening at 5:00 p.m. eastern which we'll have for you as soon as the details come owl. talk about bang for your buck. if you followed the cause of dan niles on facebook you would have
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made money on the way down when it priced and even more recently on the way up. dan is now labeling the company his favorite considered for 2013, facebook is after shorting it at the highs at the $22 a share. john, i went from a huge wear on facebook to a huge bull. thanks for having me on. >> why facebook? >> we were very vocal about facebook when they went public and they had only one engine of growth and that was on desktop pcs. they didn't have any tablets and this is before they reported the prior quart. what was interesting is they had a mobile strategy. they just sponsored news feeds and you go to the september quarter. that got to 140 quarter in
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revenue and we be surprised and another initiative for growth f interesting. that's the reason for the about face. it's gone from one horse pulling the train to now you've got or pulling the wagon, i should say, to multiple revenue drivers for next year. >> we all know that the possibility part of the business is really what happened you, and others, even os the root show they were talking about monetizing mobility because a pc is smaller and you're not able to monetize mobility the way you can on your pc. you think they have gotten that figured out? >> i think they really have and that's a little problem for a lot of vendors looking out over the next couple of years. if you look at facebook, their mobile users were i think about 604 million last quarter. it was up over 60 year over
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year, and so that's far outpacing the revenue growth of the company which is about 32%. so this is -- if you think about it this way. at $38 a share, there were no mobile revenues, and that's the price it came public at. next year i think they could do 20 billion in mobile revenues out of a total revenue stream of 7 billion, and so that's a much different worry. in addition to that, think about that next year. they have facebook ad exchange. if you're inside fake. they can advertise within the facebook platform. they are gifting and hints them getting into search. a lot of positive drivers next year just from the things we know about like mobile revenues and ad-exchange gifting, and next career there could be other
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things coming up. >> so you would -- so you would recommend buying facebook at these levels. i guess i want to know how high can it go, and also, i don't want to spend the whole interview on facebook. give me your other top picks for 2013. what do you like right here, dan? >> sure. in terms of other names that i like, quite honestly what makes me excited about next year is a lot of names that people have absolutely hated for two years and good reason, that's where we're most bullish. the specter index is down about 7% over the last two years, and the s&p is up about 13. we think that's basically started the bott tomorrow outside of the pc industry, let me correct that. semiconductors are more broadly based. we think they are going to get bert. a company that most people haven't heard of. it's called on smuktor, but they are one of the top 20 biggest semiconductor companies in the world, and they sell 42 billion
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units every year, and, you know, this is a business that's been put down for six quarters in a year. we think it's turning and a good reflection of what's going on there. i think the teleconspace as well, you saw spending really going down in the last year. this year you've had several deals, softbank for spread and deutsche telekom and you'll see a lot more spending next year in the u.s. coming out of those areas and a lot of it directed at wireless. cisco, which is a name we haven't been very bullish on for a long period of time, stock down 2% over the last two years, i think you'll see a big turnaround next year so that's where we're excited. >> a great list that we're looking at right now on facebook. sis doe. great to talk with you. >> i know we want to get into microsoft next and is on your buy line. dan, good to talk to you. >> good to talk with you.
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>> dan niles joining us on the telephone. john mcafee's bizarre run from the police in belize has stolen the headlines. >> reporter: mcafee's former firm is warning that 30 large unidentified u.s. financial institutions and their clients will be targeted by a cyber attack called project blitzkreig before spring of next year. the intent, to steal millions of dollars. here's mcafee's senior vice president pat calhoun. >> this one is very different. this one here is really intended to siphon money out of consumers' accounts and put them offshore. >> monitoring underground chat rooms, they believe a single russian hacker is behind the virus that's already infected over 100 pcs. entering them verya e-mail or website links. transfers of large but not noticely large sums of money
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isn't unusual. >> if they were to have thousands or millions of tons actions, banks will start noticing but if they do small transactions of fairly large money it's harder for the banks to identify that. >> they are warning you from opening up e-mails from unknown senders. it's also telling financial firms to monitor certain sized transactions going to offshore acounts. one of those firms is schwab, they say they can adjust defenses if they see any violations. maria, back to you. >> mary, thank you so much. coming up next, illinois congresswoman jan schakowsky says there's no way a deal can be reached and if union workers don't get the health care
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benefits they want may walk out, this after unions are making moves across the board in business that have put certain firms out of business. we've got the debate coming up. what are you up to? oh, just diagramming this accident with my state farm pocket agent app. you can also get a quote and pay your premium with this thing. i thought state farm didn't have all those apps? where did you hear that? the internet. and you believed it? yeah. they can't put anything on the internet that isn't true. where did you hear that? [ both ] the internet. oh look. here comes my date. i met him on the internet. he's a french model. uh, bonjour. [ male announcer ] state farm. more mobile than ever. get to a better state. twins. i didn't see them coming.
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welcome back. minutes away from a key miss call cliff meeting between the president and house speaker john boehner and representative jan schakowsky says the president should walk away from any deal that raises the medicare eligibility age. congresswoman, good to have you on the program. raising the medicare age is a non-starter for you. what if it's not a non-starter for the president? >> well, actually, dick durbin, senator durbin had a press conference earlier today where he said the white house has backed away from raising the eligibility age, as well they should. earlier you said, maria, people are living so much longer. the truth of the matter is if you're in the upper half of the income scale, yes, your longevity has gone up. if you're in the bottom half, not so much, and in fact if you're a poor woman in the united states of america, you've lost ground in how long you live, so raising the age of eligibility would really cut off
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many, many people. it would affect about 7 million americans who would either have to pay more or they would lose their insurance all together. >> but something's got to give, right, congresswoman? medicare has not been changed since it was adopted, and people are living longer. if you most eligibility age from 56 to 67, we're talking about more than $1 trillion in revenue. >> well, actually, maria, you may remember that number $716 billion, a number that was used by the republicans to stay that the democrats stole from medicare. we improved and made the program more efficient, and we think there's $400 billion more that we can do without cutting benefits and without hurting beneficiaries, making the system more efficient. for example, we could have medicare negotiate with
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pharmaceutical companies for lower drug prices, just like the veterans administration does, so there are certainly a number of ways for us to adjust the system that would have dramatic savings, and in fact if you raise the eligibility age, unfortunately, it's going to cost the health care system more. there will be more in costs actually because the older beneficiaries that are left in medicare, that will raise their premiums, and the older people then who go into the exchanges will raise the cost on the exchanges, so it's not good economics. >> we've just got so many sacred cow here. your sacred cow is the eligibility age. the republicans have a sacred cow onration taxes. i mean, something's got to give here so is this more -- is raising -- >> that's not a -- to me it's not an equivalency asking the wealthiest americans to pay more and then saying that people
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whose median income is $22,000 a year, that's the seniors, but we've got to take away their benefits. i'm all for making medicare more cost effective, but why should we then make that somehow even steven asking the richest and the poorest adults to pay more. >> let me ask you this. let's do even steven with spending cuts. where would you cut? >> there's lots of things. i was on the bowles/simpson commission that came up with plenty of cuts, not only from the -- the military budget which bowles/simpson did as well, but also there are entimes that can be cut, including some of the farm subsidies that we do. there's plenty of tax loopholes that we can cut that would result and the president in his proposal cut about -- we've already cut about $1.7 billion out of the -- out of the budget. we've made those cuts. >> right. >> and he's ready to do another $600 billion more. >> well, it's just amazing to me
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that every time we speak to congressmen, senators, everybody on both sides of the aisle, it just seems so simple and yet here we are with 18 days left and can't seem to agree with anything. hope you'll come back after the meeting with john boehner and the president. we hope to get more details. >> i'd love to. >> after that 5:00 p.m. meeting occurs. see you soon, congresswoman. thank you you very much. >> want to get to john harwood who has more details on this upcoming meeting. over to you >> reporter: wanted to fill you in with a conversation i had with a house republican leadership aide on this meeting between the president and the speaker. the aide said the meeting is taking place a shakeup of some sort is required in the fiscal cliff talks due to the inflexibility of the white house. now, what that shakeup is was not spelled out to me, but there are two ways that that can go. one is for the white house to suddenly give ground on spending cuts and detail additional entitlement savings as the speaker has requested, but another way to do it which seems
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more likely given the cracks in republican unity is if republicans decouple the top tax rates from those at the bottom, that is the president's proposal to extend the tax cuts for 98% of american families and let taxes go up for the 2%, don't know that that's going to happen but the idea of a shakeup in the talks suggest to me that we may be at some sort of a break point. >> so shakeup being real -- real changes from what we've heard so far. i hear what you're saying on taxes. what's the shakeup on spending, john? >> reporter: well, that's the question. what i said a moment ago, maria, was that the republican aide said the white house sip flexible. we hope what comes out of meeting is the president giving ground on spending cut, but there is no sign that the white house is prepared to do that. they are winning this fight politically right now, so i'm simply raising the possibility that a shakeup may result in a change to the republican
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approach, and the most likely change in the republican approach is to give up on holding out for the extension of all the bush tax cuts and let the tax cuts at the lower rates go through. as i said, i don't know that that's going to happen, but i think a shakeup of that kind is at least possible coming out of this meeting. we'll have to wait and see. i'm told the meeting will probably last less than an hour and we do not know whether either speaker or the president's going to speak after the meeting. certainly if a breakthrough takes place, we will hear from one or both of them. >> john, let me ask you. had somebody on the show who said earlier the whole goal is for the white house to get john boehner fired and to get the house back under democratic control. would they do that? do you think that's one of the goals here, make sure we go over the fiscal cliff so that it's the republicans fault and the public thinks it's the republicans fault so that the dems take back the house in 2014? >> reporter: not at all. john boehner is the president's partner at this point. he can't wait for two years for
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a resolution of this problem. it would be damaging for the markets, for the economy. >> everybody, yeah. >> if this thing drifts for two years. certainly the president would like to have a democratic house, but he doesn't have one right now. he's not going to have one for some time, probably not going to have one after the 2014 elections. >> no? >> so i think this president is focused on trying to get john boehner and republicans to come his way on tax rates which is a position that's popular with the american public as our nbc/"wall street journal" poll showed this week and then get to the end stage bargaining on spending. >> so who prompted this meeting, john? you said there's a real shakeup, you're hearing about a shakeup. who prompted the meeting? was it the president or john boehner? >> reporter: i don't know that yet. i infer from what i heard about a shakeup being required that the speaker might have done it, but i don't know that yet. >> okay. we know you're on it, jop. we'll come back to you when you have more info. thanks so much snow bet. just when broadway was getting back on its feet from hurricane sandy, well, then
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this. the striking service workers. they have halted -- are they going to halt broadway's recovery? we're talking about whether unions are ruining the u.s. economy? and three of wall street's top stock pickers come up who will give you a game plan and moments away from the president's and speaker boehner's meeting at white house. stay with us. or jumping into the market, he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade. monarch of marketing analysis. with the ability to improve roi through seo all by cob. and you...rent from national.
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problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com. welcome back. tough going for the country's unions. the right-to-work law gets
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passed in michigan. hostess liquidates its brands after a battle with its unions leaving 18,000 without a job and now the show may not go on for some theaters on broadway as union members are authorizing a stray. just about 12% of all workers belong to a union in had country today, 12%. it's leading some to wonder does it pay to become a union member anymore. justin wills ops of the center for union facts says the union label is toxic to the label and our other guest takes a different view. justin, you say the union brand is toxic to many workers and companies. make the case. >> got to a point where the modern unionizing schemes unions doesn't call themselves unions anymore. in the case of new york city they launched a campaign to try to unionize the fast food restaurant. they didn't call it the fast food restaurant unsions, they called it fast food forward. at this point i think unions are finally realizing that their
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brand is so toxic that they actually need to start rebranding themselves because frankly they haven't been willing or capable to actually adjust to a 21st century economy. they are stuck in the 1950s, and they want 1950s policies to return, return to protectionism and a whole slew of other policies that will hurt our economy so at this point they are sort of like becoming, well, almost extinct. >> what about that? are you stuck in the 1950s? >> absolutely not, and i think maybe just season in a little bit of a delusional stage here because unions in fact are the key right now in this weak economy. it's what we need. >> key to putting people out of work? you just put 18,000 people out of work. >> i didn't interrupt you. the key to balancing the economy have tremendous inequality. you have stagnating wages and loss of power for working people and what unions are is a voice for working families in this economy. they represent all workers. union members, but also others who are struggling for minimum wage, for a safe workplace, for
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decent working conditions, and this is exactly what the economy needs right now which is that we -- workers need a voice at the workplace and a voice in the political system and because unions have been so effective in ng a voice in the political system that's why there's ahuge attack and backlash against unions where a bunch ever right wing billionaires have put a lot of money towards trying to destroy unions in michigan and in other places, and it won't work because people are fighting back. >> it also has to do with the debt of this country. all the spending on entitlements and the spending on health care, isn't that part of it? >> no, it has nothing to do with the debt. >> really? >> because a health economy in this country would people having good jobs and paying taxes. what's not healthy is if you try to star-of-the-economy and you don't invest in infrastructure and in education and skills, unions are a voice for what the future of this country looks like which is we need to invest in our future. we need to invest in our own infrastructure and need to pay for decent education and for skills, for constant skills, and unions are the voice for doing that and unions are an important
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counterbalance to the corporate voice in this economy and this political system. >> justin, give us your research, justin. you say less than 7% of current union members actually voted in the election that established their union. >> more than 90% of current union members didn't have a chance to vote on the union that represents them and in the last three years union organizing has been at an all-time low. workers don't want unions because unions don't seem to give them anything for the dues that they charge, and don't be fooled. unions are going to charge between $500 and $1,000 every year and a lot of workers, after three years of a union contract, paying $1,500 or $3 howe in union dues are getting nothing in return. that's the beauty of right-to-work law. it holds unions accountable for the first time in decades. the union leaders actually have to try to do something to justify the money that they are siphoning off workers' paychecks. that's why when democrats talk about right-to-work laws they have to hold their nose because if there was another entity that was stealing $500 or $700 out of
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every worker's paycheck then those people -- i am serious. >> please. >> there's not a single reasonable argument for -- against right to work? >> what's the answer to the fact that close to 12% of workers now belong to a union? that's fairly half of what it was 30 years ago. i mean, unions have clearly lost some power here. >> unions have lost power because unions have been under attack by right wing assaults. >> unions are not the victims. >> would you be quiet for a second. >> not when you're going to deceive people. >> a lot of employers have also employed -- have illegally fired workers who tried to form unions. >> that is so rare. so rare in this economy. >> could you be quiet for a second, justin. it's very difficult because of our labor laws which a antiquated also. it's very difficult to form a union in this country. >> all right. >> and our labor laws don't impose very heavy penalties on an employer that breaks the law by firing a worker who tries to organize or discriminates
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against a worker who tries to organize a union. if you ask unions how many want representation at the workplace, millions and millions of workers who say -- >> it's actually 13%. it's 13% of workers want to join a worker. we did a poll, 13% of workers want a union. >> this is a topic we'll continue. hope you'll come back soon to continue hashing this out. >> thanks for having us. >> we appreciate it. new tea leaves on the economy could move your money before w money morkers are going to be here. stay with us. and then, we are waiting on the meeting between john boehner in and the president in ten minutes. back in a moment. ow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. recognize me.
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welcome back. 30 seconds on the clock for each of oust next guests that coutels what could move the market tomorrow. gentlemen, good to see you. brian, we kick it off with you. 30 seconds on the clock. tell us what will move our money tomorrow. >> all right, i'll be watching the core cpi index coming out. it's expected to remain low at .1%. the industry production report is expected to be positive, after a negative showing last
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time. i'm be watching for developments in the so-called fiscal cliff. this is a known even about fear of the cliff has caused many investors to pull out, creating a real buying opportunity. finally, i'll be watching for the felt, they've been artificially keeping treasuries and mortgage-backed bonds down. i'll be watching for fund followups into different areas. >> all right, thank you so much. chris, you're up. break it down for us. >> i'll be watching the bank of japan overnight. they are set to be releasing their fourth quarter survey. we are expecting business conditions to show continued detear owe ration. i'm going to be looking at cpi and pmi readings out of the euro zone. roughly in line with previous readings. going to be very findful of potential upside surprising there. going to be looking at technical levels with dollar yen trading just below those 2012 highs around 84.20 and looking at a potential inverted head and shoulders.
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>> all right, good stuff. right on top. jeremy, you are up. last but not least. tell me what you're watching tomorrow. >> okay, we're watching out for the cpi report. we're expecting to see inflation pressures continue to ease. that's important, because it's going to keep the fed on the sidelines and supporting the economy with policy for a long time to come. the industry from duction reports also important, last month was weighed down by the affects of hurricane sandy, so, we'll be looking to see how large the rebound is this month. and then also any progress on the fiscal cliff negotiations. >> all right. all important events. thank you, gentlemen, appreciate your time tonight. >> thank you. >> see you soon. up next, tick tock on the fiscal cliff. president obama and house speaker john boehner meeting at the white house just minutes from now. my thoughts on the talks, the fed, and that cliff hanger, right after this. let's give thanks - for an idea. a grand idea called america.
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meeting will likely last about an hour and could, quote, shake up the talks, presumably in a good way. boy, i would think the fed and ben bernanke are rooting hard for that one. we saw how the market is moving on every single development out of washington, with stocks quickly coming off of their session lows today, just on the report that the two main players would finally get in the same room, look at each other eye to eye and talk this out. even with the fed's latest contortions yesterday, it freely admits it does not have the tools that will combat the affects of a fiscal cliff debacle. ben bernanke and his fed cohorts have done the job that congress should have been doing all along. if he had his way, it would not have been the fed doing so much to help this economy. it would have been our elected officials. the job that they're paid to do. he stepped in because he had to, not because he wanted to. now, the message is clear. the fed cannot fix washington's ineptitude this time, if they can't come to a compromise and make a deal. so, you sure can be sure